10/06/2008 - 14:00

St Barbara to raise $120m

10/06/2008 - 14:00

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Gold miner St Barbara Ltd plans to raise $120 million in equity with proceeds to fund the development of the Gwalia gold mine near Leonora.

Gold miner St Barbara Ltd plans to raise $120 million in equity with proceeds to fund the development of the Gwalia gold mine near Leonora.

The equity raising will be through a pro-rata entitlement offer and an institutional placement, and is fully underwritten by Macquarie Capital Advisers Ltd.

Under the entitlement offer, shareholders can subscribe for a two for seven entitlement to new St Barbara shares at a price of 40c for each new share.

Meanwhile the company plans to raise $6 million from the institutional placement which will be conducted later this week.

The raising of fresh equity comes after earlier plans for a $50 million debt facility were scrapped due to significant changes in the market.

The company plans to use the funds on increasing productivity and efficiency at its Southern Cross processing plant, fund the development of Gwalia and sustain exploration activities,

St Barbara said it does not anticipate that the planned operations at Southern Cross and Leonora for the 2009 financial year will require the raising of any additional equity funds following this Offer.

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